Re: Federal Financial Assistance During the Current Lapse in Appropriations (20 January 2018)

From 20 January 2018 until a Federal appropriations bill is signed into law, most Federal agencies, including EDA, will cease routine operations; therefore, EDA staff are prohibited from working. This message represents the last communication you will receive from EDA staff until we return to work. EDA staff are not allowed to respond to any inquires until operations resume and will not be able to respond to any questions about this message.

Below please find guidance based on the Department of Commerce Financial Assistance Standard Terms and Conditions, dated 31 March 2017. Your award may incorporate a prior version of the Standard Terms and Conditions; nevertheless, consider this EDA’s official guidance on how to proceed during the current lapse in appropriations. EDA has been instructed by the Department of Commerce’s Office of Acquisition Management that this guidance is now in effect.

1. Unless there is an actual rescission of funds for specific grant or cooperative agreement obligations, non-Federal entities under Federal financial assistance awards for which funds have been obligated generally will be able to continue to perform and incur allowable expenses under the award during a funding hiatus. Non-Federal entities are advised that ongoing activities by Federal employees involved in grant or cooperative agreement administration (including payment processing) or similar operational and administrative work cannot continue when there is a funding lapse. Therefore, there may be delays, including payment processing delays, in the event of a shutdown.

2. All award actions will be delayed during a government shutdown. If it appears that a non-Federal entity’s performance under a grant or cooperative agreement will require agency involvement, direction, or clearance during the period of a possible government shutdown, the Program Officer or Grants Officer, as appropriate, may attempt to provide such involvement, direction, or clearance prior to the shutdown or advise non-Federal entities that such involvement, direction, or clearance will not be forthcoming during the shutdown. Accordingly, non-Federal entities whose ability to withdraw funds is subject to prior agency approval, which in general are non-Federal entities that have been designated high risk, non-Federal entities under construction awards, or are otherwise limited to reimbursements or subject to agency review, will be able to draw funds down from the relevant Automatic Standard Application for Payment (ASAP) account only if agency approval is given and coded into ASAP prior to any government shutdown or closure. This limitation may not be lifted during a government shutdown. Non-Federal entities should plan to work with the Grants Officer to request prior approvals in advance of a shutdown wherever possible. Non-Federal entities whose authority to draw down award funds is restricted may decide to suspend work until the government reopens.

3. The ASAP system should remain operational during a government shutdown. Non-Federal entities that do not require any Grants Officer or agency approval to draw down advance funds from their ASAP accounts should be able to do so during a shutdown. The 30-day limitation on the drawdown of advance funds will still apply notwithstanding a government shutdown and advanced funds held for more than 30 calendar days will have to be returned with interest.

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